The question of whether or not to include salary ranges in job descriptions is one that sparks much debate. If you want to attract top talent in today's competitive jobseeker's market, you need to ensure that your job posts give candidates enough information to determine if the position fits their needs. MMO's research has found that adding a salary range increases your hiring chances by four times. With this comes a greater number of high-quality applications also.
Here are 6 reasons why you should include salary ranges in your job descriptions and job ads:
1) To increase the pool of potential applicants
A study by SMART Recruit Online found that when job ads include a salary range, they get over 30% more applicants.
This means that by omitting salary ranges in your job descriptions, you are greatly reducing your chances of meeting with the best talent.
2) 'DOE' doesn't mean anything without a salary range
When candidates see 'DOE' ('Depending on experience') on a job ad, the chances are they will think that the company will pay them the equivalent of their last salary, or whatever is the lowest going rate.
Including salary range, shows the pay scale for the position on offer, giving the candidate the best and worst-case scenarios.
3) Candidates rarely leave jobs to be paid the same rate
According to Payscale's 2015 Compensation Best Practices Report, the main reason why employees leave companies is to 'seek higher pay elsewhere.'
4) Millennials expect it
In Jennifer Deal's 'What Millennials Want From Work', she found that 'millennials are most likely to discuss their compensation with their parents (71%) or their friends (47%).'
5) It creates a good candidate experience
You won't waste candidates' time, as they won't send an application to you if your stated salary range doesn't meet their expectations. Not applying at the beginning is better for them, than applying, going through a few rounds of screening and interviews only to eventually find out that the salary range is too low for them.
Your own time comes at a cost too, so why should you be spending time on candidates that your company simply can't afford to hire?
6) It'll ease the awkward interview conversations
Bringing up the salary in interviews is much like playing poker - no one wants to give away their cards. Candidates don't want to appear too money-driven and don't want to disclose their salary expectations too soon. This leaves them in a vulnerable position where they don't know whether or not they can even afford to accept the job that's on offer until the final stages of the hiring process. With a ballpark salary range stated, there's no need for this game; the candidate wouldn't be there if they weren't ok with the salary for the position!
If a company doesn't include salary ranges in job descriptions, candidates will be suspicious of why this is the case. Is it because they don't want to tip off competitors, or is it because they pay below industry rates? Is it because they don't want to upset their current employees, or is it because there are no pay bands and two people doing the same job could have two completely different salaries?
For a comprehensive advice on how to write an effective job description download our free guide.
One thing is for sure - there are many reasons why you should include salary ranges in your job descriptions and job ads, and the research proves it can help you secure the most suitable and qualified candidates.